CASE STUDY 2: Inventory Audit Process
Independent Auditing That Closes the Gap Between Records and Reality
When a multi-location fine art storage and logistics provider needed an independent verification of their inventory across dozens of facilities, they engaged SMG to conduct a comprehensive physical audit program.
Our team performed systematic, location-by-location audits using a structured process built around physical verification, condition documentation, and cross-referencing against existing inventory records. What the audit revealed was consistent with what SMG finds at most large-scale operations: a meaningful gap between what the system showed and what was actually on the floor. Items recorded as delivered were
unaccounted for. Items present in storage had incomplete or missing documentation. And average inventory levels per location differed from what internal records suggested.
The findings were compiled into a formal compliance report and delivered alongside a complete internal reconciliation — giving the client a clear, defensible picture of their actual holdings. That documentation became the foundation for updated internal controls, insurance compliance filings, and a new standard for how inventory is tracked and verified going forward.
SMG’s audit process is designed to do exactly this: confirm what you have, surface what you don’t, and give you documentation you can stand behind.
Client details are confidential. Findings reflect actual SMG audit engagement.